The big danger or risk of a best-cost provider strategy is:

The big danger or risk of a best-cost provider strategy is: 



A. that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.

B. not establishing strong alliances and partnerships with key suppliers.

C. that rivals, with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes.

D. that it will be unable to achieve top-notch quality at a rock-bottom cost.

E. becoming too highly integrated and not relying enough on outsourcing.


Answer: that rivals, with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes.


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